Budget blues got you down?

Post By: Lisa Beth Lentini, CEO of Lumen Worldwide Endeavors and Co-Founder of MentorCare

Working from home (aka remote work) and closed borders means that there’s a pretty good chance that your budget needs to be looked at pretty closely for 2021.  Fewer meetings, less travel, even virtual conferences should mean that there are some shifts in needs.  It definitely isn’t a year when you can just rinse and repeat. 

While there are profound changes, what doesn’t change for compliance professionals is the need to make sure that they have budgeted and are running an effective compliance program.  But what does this include after the dumpster fire that 2020 has been? The only clear answer is that an effective compliance program should be grounded in and reflect the principles set forth in the U.S. Department of Justice’s (DOJ) guidance. 

To understand more about considerations in your budgeting process, consider the following tips:

Use the DOJ guidance as your ‘North Star’ and understand the regulatory landscape

Of course, it wouldn’t be 2020 unless the DOJ updated their guidance because frankly, this is the year that threw a million different curveballs.  And of course, OFAC got in on the action too with revised guidance as well.  But what stayed the same is that there are still three foundational questions :  (1) Is the corporation’s compliance program well designed?; (2) Is the program being applied earnestly and in good faith?; and (3) Does the compliance program work in practice?

At any given moment, an organization faces multiple local, state, federal and/or international regulations. Being fully aware of the regulatory landscape - in real-time - is an absolute necessity. Make sure that your regulatory matrices and your risk assessments are up to date to determine what needs may be on the horizon and how you need to remediate ongoing concerns. You also should make sure you have a clear picture the policies, practices and controls in place or needed so that your teams receive the support and information they need to maintain compliance.

Create and maintain the right talent mix

There is magic in the way you can properly manage people to get the best outcomes. Identifying the right people and developing their skills should be the foundation of your compliance program. While conferences are largely virtual right now, you still need to continually be learning and you should be maintaining your networks. Having the right people in place means your company can source, interpret, assess, and find the right way to adjust to new regulations quickly. The right talent pool plays a crucial role in risk management.

It’s important to note that during times of crisis, there is often a reaction to make cuts across the enterprise, including compliance.  To the extent possible, focus on retaining talent and enhancing your team. If there are new initiatives made possible during the shifting sands environment of the pandemic era, then make the case for more support.

Use technology as a multiplier and collaboration as a key

While the remote work settings seem to be here to stay for a while, compliance functions need to learn to be as effective if not more in the new environment. Think about the way compliance activities need to shift in the virtual environment. It may be worthwhile investing in training on the technologies you or other departments already have to ensure that you can harness the full power of technology solutions you possess or may need going forward.  You should also look to the tools and technologies that other departments and parts of the business may be able to co-design with you.  This can include any data analytics teams, your HR solutions, finance, risk, cybersecurity and IT, etc.  Don’t reinvent the wheel.  Get deeper and smarter with what you have and be strategic about any needs.

It will take extra effort to gain buy-in for compliance

In the best of times, getting buy-in is a challenge for compliance approaches.  Now more than ever, tone at the top and mood at the middle are critical. The last year has presented an opportunity for a re-emphasis of the right tone. While this term is sometimes criticized as overused or misused as an empty catchphrase, the fact is that DOJ itself uses this phrase in its guidance to prosecutors. Whether called “tone at the top,” “ethical leadership” or something else, the point remains that effective compliance requires the very top leaders of any organization to effectively communicate the following: (1) compliance is an organizational priority; (2) everyone within the organization has a role to play in ensuring organizational compliance; and (3) effective compliance efforts will be noticed and rewarded.

As chaotic as things are right now for nearly every organization, now is not the time to go silent on compliance. Right now, compliance professionals should view this crisis as an opportunity to invest properly in order to avoid or mitigate bigger (more costly) problems in the future. What the pandemic, diversity and inclusion, and ESG initiatives are all demanding is the breaking down of silos.  Now is the time and the investment is critical now. Compliance efforts are most effective when working collaboratively with the legal, corporate, and business functions across the entire enterprise and with all other stakeholders in mind.